Covid crisis: Shop, eatery owners in Delhi, Mumbai expect muted unlocking

With restrictions on timings and capacity in Mumbai and Delhi, they don't expect to make much money

As Maharashtra and New Delhi start unlocking in phases today, restaurant owners and shop keepers are keeping their expectations resolutely low.  

In Mumbai, dining in has been permitted in restaurants on weekdays up to 50 per cent capacity from 7 am to 4 pm. On weekends, only take-aways and home deliveries will be allowed.

In Delhi, markets and malls will re-open on an odd-even basis, with shops permitted to operate from 10 am to 8 pm.

“Traders in Delhi are largely against the odd-even formula. It will add confusion. Consumers will come shopping without knowing whether stores will be open or not,” said Praveen Khandelwal, secretary general, Confederation of All India Traders.

Riyaaz Amlani, CEO and MD, Impresario Entertainment and Hospitality, says that a few of his company's outlets will re-open on Monday. Amlani runs restaurants such as Smoke House Deli and Social in Mumbai and Delhi.

"We have over 20 outlets in Mumbai. The timings are unsuitable, since 80 per cent of revenue for a restaurant is generated in the evenings from dine in operations. However, we need to make a start, which is why around 5-6 outlets will re-open on day one. We will increase the number progressively,” said Amlani.

Like other shops, liquor sellers can operate on an odd-even basis in Delhi. But gyms, spas, hair salons, bars and restaurants will remain closed in the capital.

In Mumbai, they can re-open but at half capacity and with restricted timings.

It is estimated that not more than 20-25 per cent of eateries will  re-open on Monday given these restrictions. There could be a similar situation in the beauty and wellness market too as owners wait for the Mumbai authorities to relax the lockdown even further as the caseload falls.

"The time restriction is unfavourable. Dinner services are a critical part of operations. While the seating cap existed during the unlock phase last year, the time restrictions are a challenge. And weekends are closed. We are hoping that things normalise quickly for restaurants," said Gurbaxish Singh Kohli, vice-president, the Federation of Hotel and Restaurant Associations of India.

Almost 80 per cent of business for restaurants comes via dine in customers on weekends. Restaurant owners say that earnings during the day are negligible, especially during a  pandemic when most people are working from home.

Food delivery contributes only around 5-7 per cent of the total revenue of a restaurant.

In Delhi, mall owners say they are ready and will strictly monitor footfalls. Pushpa Bector, executive director at DLF Shopping Malls,points out that June and July are the time for sales.

“Many shops have a lot of stock to exhaust. We anticipate that the sales will start soon to ensure stocks can be liquidated. We will be gearing up for the season and are ready to get consumers back in a safe and secure environment with our vaccination and sanitation drive," said Bector.

Anurag Katriar, president, National Restaurant Association of India, said that the phased approach to unlocking in Mumbai was welcome.  

"It is certainly better than last year when eateries were among  the last to re-open. Yes, there are challenges, but the situation will normalise gradually,” he said.

The first wave saw nearly 35 per cent of restaurants shut permanently across the country. Another 30 per cent are believed to have closed during the second wave.

Katriar said that the re-opening, coupled with the on-tap liquidity announced by the Reserve Bank of India on Friday, will help to arrest the high restaurant mortality rate.